TITLE IV--BUSINESS DEVELOPMENT ASSISTANCE

Subtitle A--General Provisions

Sec. 404. Small business development center program examination and certification.

Sec. 405. Service Corps of Retired Executives (SCORE) program.

Sec. 406. Information concerning franchising.

Subtitle B--Development of Woman-Owned Businesses

Sec. 411. Extension of authority for demonstration projects.

Sec. 412. Establishment of Office of Women’s Business Ownership.

Sec. 413. National Commission on Women in Business.

TITLE V--RELIEF FROM DEBENTURE PREPAYMENT PENALTIES

Sec. 501. Short title.

Sec. 502. Prepayment of development company debentures.

TITLE VI--MISCELLANEOUS AMENDMENTS

Sec. 601. Consolidation of funding accounts.

Sec. 602. Imposition of fees.

Sec. 603. Job creation and community benefit.

Sec. 604. Microloan program amendments.

Sec. 605. Technical clarification.

Sec. 606. Secondary market study due date.

Sec. 607. Study and data base: Guaranteed Business Loan Program and Development Company Program.

Sec. 608. SBIR vendors.

Sec. 609. Program extension.

Sec. 610. Prohibition on the use of funds for individuals not lawfully within the United States.

Sec. 611. Office of advocacy employees.

Sec. 612. Prohibition on the provision of assistance.

Sec. 613. Certification of compliance with child support obligations.

TITLE I--AUTHORIZATIONS

SEC. 101. AUTHORIZATIONS.

Section 20 of the Small Business Act (15 U.S.C. 631 note) is amended by striking subsections (k) (as added by section 405(3) of the Small Business Credit and Business Opportunity Enhancement Act of 1992) through (p) and inserting the following:

‘(l) The following program levels are authorized for fiscal year 1995:

‘(1) For the programs authorized by this Act, the Administration is authorized to make $110,000,000 in direct and immediate participation loans, and $45,000,000 in technical assistance grants as provided in section 7(m).

‘(2) For the programs authorized by this Act, the Administration is authorized to make $13,315,000,000 in deferred participation loans and other financings. Of such sum, the Administration is authorized to make--

‘(A) $9,000,000,000 in general business loans as provided in section 7(a);

‘(B) $2,300,000,000 in financings as provided in section 7(a)(13) and section 504 of the Small Business Investment Act of 1958;

‘(C) $2,000,000,000 in loans as provided in section 7(a)(21); and

‘(D) $15,000,000 in loans as provided in section 7(m).

‘(3) For the programs authorized by title III of the Small Business Investment Act of 1958, the Administration is authorized to make--

‘(A) $33,000,000 in purchases of preferred securities;

‘(B) $275,000,000 in guarantees of debentures, of which $65,000,000 is authorized in guarantees of debentures from companies operating pursuant to section 301(d) of such Act; and

‘(C) $500,000,000 in guarantees of participating securities.

‘(4) For the programs authorized by part B of title IV of the Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed $1,800,000,000, of which not more than $450,000,000 may be in bonds approved pursuant to the provisions of section 411(a)(3) of such Act.

‘(5) The Administration is authorized to make grants or enter into cooperative agreements--

‘(A) for the Service Corps of Retired Executives program authorized by section 8(b)(1), $3,500,000;

‘(B) for the Small Business Institute program authorized by section 8(b)(1), $3,000,000; and

‘(C) for activities of small business development centers pursuant to section 21(c)(3)(G), $25,000,000, to remain available until expended.

‘(m) There are authorized to be appropriated to the Administration for fiscal year 1995 such sums as may be necessary to carry out the provisions of this Act, including administrative expenses and necessary loan capital for disaster loans pursuant to section 7(b), and to carry out the provisions of the Small Business Investment Act of 1958, including salaries and expenses of the Administration.

‘(n) The following program levels are authorized for fiscal year 1996:

‘(1) For the programs authorized by this Act, the Administration is authorized to make $175,000,000 in direct and immediate participation loans, and $65,000,000 in technical assistance grants as provided in section 7(m).

‘(2) For the programs authorized by this Act, the Administration is authorized to make $15,320,000,000 in deferred participation loans and other financings. Of such sum, the Administration is authorized to make--

‘(A) $10,000,000,000 in general business loans as provided in section 7(a);

‘(B) $2,800,000,000 in financings as provided in section 7(a)(13) and section 504 of the Small Business Investment Act of 1958;

‘(C) $2,500,000,000 in loans as provided in section 7(a)(21); and

‘(D) $20,000,000 in loans as provided in section 7(m).

‘(3) For the programs authorized by title III of the Small Business Investment Act of 1958, the Administration is authorized to make--

‘(A) $39,000,000 in purchases of preferred securities;

‘(B) $300,000,000 in guarantees of debentures, of which $70,000,000 is authorized in guarantees of debentures from companies operating pursuant to section 301(d) of such Act; and

‘(C) $750,000,000 in guarantees of participating securities.

‘(4) For the programs authorized by part B of title IV of the Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed $2,000,000,000, of which not more than $500,000,000 may be in bonds approved pursuant to the provisions of section 411(a)(3) of such Act.

‘(5) The Administration is authorized to make grants or enter cooperative agreements--

‘(A) for the Service Corps of Retired Executives program authorized by section 8(b)(1), $3,750,000;

‘(B) for the small business institute program authorized by section 8(b)(1), $3,250,000; and

‘(C) for activities of small business development centers pursuant to section 21(c)(3)(G), not to exceed $25,000,000, to remain available until expended.

‘(o) There are authorized to be appropriated to the Administration for fiscal year 1996 such sums as may be necessary to carry out the provisions of this Act, including administrative expenses and necessary loan capital for disaster loans pursuant to section 7(b), and to carry out the provisions of the Small Business Investment Act of 1958, including salaries and expenses of the Administration.

‘(p) The following program levels are authorized for fiscal year 1997:

‘(1) For the programs authorized by this Act, the Administration is authorized to make $250,000,000 in direct and immediate participation loans and $98,000,000 in technical assistance grants as provided in section 7(m), to remain available until expended.

‘(2) For the programs authorized by this Act, the Administration is authorized to make $19,020,000,000 in deferred participation loans and other financings. Of such sum, the Administration is authorized to make--

‘(A) $12,000,000,000 in general business loans as provided in section 7(a);

‘(B) $3,500,000,000 in financings as provided in section 7(a)(13) and section 504 of the Small Business Investment Act of 1958;

‘(C) $3,500,000,000 in loans as provided in section 7(a)(21); and

‘(D) $20,000,000 in loans as provided in section 7(m).

‘(3) For the programs authorized by title III of the Small Business Investment Act of 1958, the Administration is authorized to make--

‘(A) $45,000,000 in purchases of preferred securities;

‘(B) $375,000,000 in guarantees of debentures, of which $75,000,000 is authorized in guarantees of debentures from companies operating pursuant to section 301(d) of such Act; and

‘(C) $1,125,000,000 in guarantees of participating securities.

‘(4) For the programs authorized by part B of title IV of the Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed $2,200,000,000, of which not more than $650,000,000 may be in bonds approved pursuant to the provisions of section 411(a)(3) of such Act.

‘(5) The Administration is authorized to make grants or enter cooperative agreements--

‘(A) for the Service Corps of Retired Executives program authorized by section 8(b)(1), $4,000,000;

‘(B) for the small business institute program authorized by section 8(b)(1), $3,500,000; and

‘(C) for activities of small business development centers pursuant to section 21(c)(3)(G), not to exceed $25,000,000, to remain available until expended.

‘(q) There are authorized to be appropriated to the Administration for fiscal year 1997 such sums as may be necessary to carry out the provisions of this Act, including administrative expenses and necessary loan capital for disaster loans pursuant to section 7(b), and to carry out the provisions of the Small Business Investment Act of 1958, including salaries and expenses of the Administration.’.

TITLE II--FINANCIAL ASSISTANCE PROGRAMS

SEC. 201. MICROLOAN FINANCING PILOT.

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended by adding at the end the following new paragraph:

‘(12) DEFERRED PARTICIPATION LOAN PILOT- In lieu of making direct loans to intermediaries as authorized in paragraph (1)(B), during fiscal years 1995 through 1997, the Administration may, on a pilot program basis, participate on a deferred basis of not less than 90 percent and not more than 100 percent on loans made to intermediaries by a for-profit or nonprofit entity or by alliances of such entities, subject to the following conditions:

‘(A) NUMBER OF LOANS- In carrying out this paragraph, the Administration shall not participate in providing financing on a deferred basis to more than 10 intermediaries in urban areas or more than 10 intermediaries in rural areas.

‘(B) TERM OF LOANS- The term of each loan shall be 10 years. During the first year of the loan, the intermediary shall not be required to repay any interest or principal. During the second through fifth years of the loan, the intermediary shall be required to pay interest only. During the sixth through tenth years of the loan, the intermediary shall be required to make interest payments and fully amortize the principal.

‘(C) INTEREST RATE- The interest rate on each loan shall be the rate specified by paragraph (3)(F) for direct loans. Subject to the availability of appropriations, the Administration may make payments to lenders on behalf of intermediaries in order to achieve such interest rate.’.

SEC. 202. ELIGIBILITY OF NATIVE AMERICAN TRIBAL GOVERNMENTS TO BE MICROLOAN INTERMEDIARIES.

Section 7(m)(11)(A) of the Small Business Act (15 U.S.C. 636(m)(11)(A)) is amended--

(1) in clause (iii), by striking ‘or’ at the end;

(2) in clause (iv), by striking the comma at the end and inserting ‘; or’; and

(3) by adding at the end the following new clause:

‘(v) an agency of or nonprofit entity established by a Native American Tribal Government,’.

SEC. 203. MICROLOAN PROGRAM EXTENSION.

Section 609(j) of Public Law 102-140 (105 Stat. 831) is amended by striking ‘5 years after the date of enactment of this Act’, and inserting ‘on October 1, 1998’.

SEC. 204. MICROLOAN PROGRAM FUNDING AND STATE LIMITATIONS.

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended--

(1) in paragraph (5)(A)--

(A) by striking ‘25 grants’ and inserting ‘50 grants’; and

(B) by striking ‘$125,000’ and inserting ‘$150,000’; and

(2) by striking paragraph (7) and inserting the following:

‘(7) PROGRAM FUNDING FOR MICROLOANS-

‘(A) NUMBER OF PARTICIPANTS- In carrying out paragraph (1)(B)(i), the Administration may fund, on a competitive basis, not more than--

‘(i) 150 microloan programs in fiscal year 1995; and

‘(ii) 200 microloan programs in each succeeding fiscal year.

‘(B) STATE LIMITATIONS- A State shall not receive more than $10,000,000 in loan funds during any year of program participation.’.

SEC. 205. DISTRIBUTION OF INTERMEDIARIES.

Section 7(m)(8) of the Small Business Act (15 U.S.C. 636(m)(8)) is amended to read as follows:

‘(8) DISTRIBUTION OF INTERMEDIARIES- In approving microloan program applicants under this subsection, the Administration shall select such intermediaries as will further microloan availability for small businesses in all industries located throughout each State, especially small businesses located in economically distressed urban and rural areas.’.

SEC. 206. MICROLOAN INTERMEDIARY LOAN LIMITATION.

Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 636(m)(3)(C)) is amended by striking ‘$1,250,000’ and inserting ‘$2,000,000’.

SEC. 207. MICROLOAN TECHNICAL ASSISTANCE TO NONBORROWERS.

Section 7(m)(4) of the Small Business Act (15 U.S.C. 636(m)(4)) is amended by adding at the end the following new subparagraph:

‘(E) ASSISTANCE TO CERTAIN SMALL BUSINESS CONCERNS- Each intermediary may expend an amount not to exceed 20 percent of the grant funds authorized under paragraph (1)(B)(ii) to provide marketing, management, and technical assistance to small business concerns that are not borrowers under this subsection.’.

SEC. 208. MICROLOAN DEMONSTRATION PROGRAM GRANTS.

Section 7(m)(4) of the Small Business Act (15 U.S.C. 636(m)(4)) is amended--

(1) in subparagraph (B), by inserting ‘except for a grant made to an intermediary that provides not less than 50 percent of its loans to small business concerns owned by one or more members of a federally recognized Indian tribe,’ after ‘under subparagraph (A),’; and

(2) in subparagraph (C), by striking clause (i) and inserting the following:

‘(i) IN GENERAL- In addition to grants made under subparagraph (A), each intermediary shall be eligible to receive a grant equal to 5 percent of the total outstanding balance of loans made to the intermediary under this subsection if--

‘(I) the intermediary provides not less than 25 percent of its loans to small business concerns owned by one or more members of a federally recognized Indian tribe; or

‘(II) the intermediary has a portfolio of loans made under this subsection that averages not more than $7,500 during the period of the intermediary’s participation in the program.’.

SEC. 209. ELIGIBILITY TO PARTICIPATE AS A MICROLOAN INTERMEDIARY AND A TECHNICAL ASSISTANCE PROVIDER.

Section 7(m)(2) of the Small Business Act (15 U.S.C. 636(m)(2)) is amended--

(1) by striking ‘(2) ELIGIBILITY FOR PARTICIPATION- An’ and inserting the following:

‘(2) ELIGIBILITY FOR PARTICIPATION-

‘(A) IN GENERAL- An’;

(2) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and indenting accordingly; and

(3) by adding at the end the following new subparagraph:

‘(B) PARTICIPATION AS INTERMEDIARY AND TECHNICAL ASSISTANCE PROVIDER- A single entity may simultaneously receive 1 grant as an intermediary pursuant to paragraph (1)(B)(ii) and 1 grant as a nonintermediary technical assistance provider pursuant to paragraph (1)(B)(iii) if the Administration determines that--

‘(i) the purposes of the grants are not duplicative;

‘(ii) the grants will enable the entity to provide technical assistance to different geographic areas, or to support both guaranteed and direct loans in the same geographic area; and

‘(iii) the entity meets all of the requirements of the programs authorized pursuant to clauses (ii) and (iii) of paragraph (1)(B).’.

SEC. 210. LOANS TO EXPORTERS.

Section 7(a)(14)(A) of the Small Business Act (15 U.S.C. 636(a)(14)(A)) is amended to read as follows:

‘(14)(A) The Administration may provide extensions of credit, standby letters of credit, revolving lines of credit for export purposes, and other financing to enable small business concerns, including small business export trading companies and small business export management companies, to develop foreign markets. A bank or participating lending institution may establish the rate of interest on such financings as may be legal and reasonable.’.

SEC. 211. WORKING CAPITAL INTERNATIONAL TRADE LOANS.

Section 7(a)(3)(B) of the Small Business Act (15 U.S.C. 636(a)(3)(B)) is amended to read as follows:

‘(B) if the total amount outstanding and committed (on a deferred basis) solely for the purposes provided in paragraph (16) to the borrower from the business loan and investment fund established by this Act would exceed $1,250,000, of which not more than $750,000 may be used for working capital, supplies, or financings under section 7(a)(14) for export purposes; and’.

SEC. 212. GUARANTEES ON INTERNATIONAL TRADE LOANS.

Section 7(a)(2)(B)(iv) of the Small Business Act (15 U.S.C. 636(a)(2)(B)(iv)) is amended to read as follows:

‘(iv) not less than 85 percent nor more than 90 percent of the financing outstanding at the time of disbursement if such financing is a loan under paragraph (14) or (16).’.

SEC. 213. ACCREDITED LENDERS PROGRAM.

(a) ESTABLISHMENT- Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended by adding at the end the following new section:

‘SEC. 507. ACCREDITED LENDERS PROGRAM.

‘(a) ESTABLISHMENT- The Administration is authorized to establish an Accredited Lenders Program for qualified State and local development companies that meet the requirements of subsection (b).

‘(b) REQUIREMENTS- The Administration may designate a qualified State or local development company as an accredited lender if such company--

‘(1) has been an active participant in the Development Company Program authorized by sections 502, 503, and 504 for not less than the preceding 12 months;

‘(2) has well-trained, qualified personnel who are knowledgeable in the Administration’s lending policies and procedures for such Development Company Program;

‘(3) has the ability to process, close, and service financing for plant and equipment under such Development Company Program;

‘(4) has a reasonable and acceptable loss rate on the company’s debentures;

‘(5) has a history of submitting to the Administration complete and accurate debenture guaranty application packages; and

‘(6) has demonstrated the ability to serve small business credit needs for financing plant and equipment through the Development Company Program authorized by sections 502, 503, and 504.

‘(c) EXPEDITED PROCESSING OF LOAN APPLICATIONS- The Administration shall develop an expedited procedure for processing a loan application or servicing action submitted by a qualified State or local development company that has been designated as an accredited lender in accordance with subsection (b).

‘(d) SUSPENSION OR REVOCATION OF DESIGNATION-

‘(1) IN GENERAL- The designation of a qualified State or local development company as an accredited lender may be suspended or revoked if the Administration determines that--

‘(A) the development company has not continued to meet the criteria for eligibility under subsection (b); or

‘(B) the development company has failed to adhere to the Administration’s rules and regulations or is violating any other applicable provision of law.

‘(2) EFFECT- A suspension or revocation under paragraph (1) shall not affect any outstanding debenture guarantee.

‘(e) DEFINITION- For purposes of this section, the term ‘qualified State or local development company’ has the same meaning as in section 503(e).’.

(b) REGULATIONS- Not later than 120 days after the date of enactment of this Act, the Administration shall promulgate final regulations to carry out this section.

(c) REPORT- Not later than 1 year after the effective date of regulations promulgated under subsection (b), the Administration shall report to the Committees on Small Business of the Senate and the House of Representatives on the implementation of this section. Such report shall include data on the number of development companies designated as accredited lenders, their debenture guarantee volume, their loss rates, the average processing time on their guarantee applications, and such other information as the Administration deems appropriate.

SEC. 214. INTEREST RATE ON CERTIFIED DEVELOPMENT COMPANY LOANS.

Section 112(c) of the Small Business Administration Reauthorization and Amendment Act of 1988 (102 Stat. 2996) is amended--

(1) in paragraph (1), by striking ‘(1) IN GENERAL- Section 503’ and inserting ‘Section 503’; and

(2) by striking paragraph (2).

SEC. 215. CERTIFICATIONS OF ELIGIBILITY FOR SBIC AND SSBIC FINANCING.

Section 308 of the Small Business Investment Act of 1958 (15 U.S.C. 687) is amended by adding at the end the following new subsection:

‘(h) CERTIFICATIONS OF ELIGIBILITY-

‘(1) CERTIFICATION BY SMALL BUSINESS CONCERN- Prior to receiving financial assistance from a company licensed pursuant to subsection (c) or (d) of section 301, a small business concern shall certify in writing that it meets the eligibility requirements of the Small Business Investment Company Program or the Specialized Small Business Investment Company Program, as applicable.

‘(2) CERTIFICATION BY COMPANY- Prior to providing financial assistance to a small business concern under this Act, a company licensed pursuant to subsection (c) or (d) of section 301 shall certify in writing that it has reviewed the application for assistance of the small business concern and that all documentation and other information supports the eligibility of the applicant.

‘(3) RETENTION OF CERTIFICATIONS- Certificates made pursuant to paragraphs (1) and (2) shall be retained by the company licensed pursuant to subsection (c) or (d) of section 301 for the duration of the financial assistance.’.

SEC. 216. PARTICIPATING SECURITIES FOR SMALLER SBICS.

Section 303(g) of the Small Business Investment Act of 1958 (15 U.S.C. 683(g)) is amended by adding at the end the following new paragraph:

‘(13) PARTICIPATING SECURITIES FOR SMALLER SMALL BUSINESS INVESTMENT COMPANIES-

‘(A) IN GENERAL- Subject to the provisions of subparagraph (B), of the amount of the annual program level of participating securities approved in appropriations Acts, 50 percent shall be reserved for funding small business investment companies with private capital of less than $20,000,000.

‘(B) EXCEPTION- During the last quarter of each fiscal year, if the Administrator determines that there is a lack of qualified applicants with private capital of less than $20,000,000, the Administrator may utilize all or any part of the program level for securities reserved under subparagraph (A) for qualified applicants with private capital of $20,000,000 or more.’.

TITLE III--SIZE STANDARDS AND BOND GUARANTEES

SEC. 301. SIZE STANDARD CRITERIA.

Section 3(a)(2) of the Small Business Act (15 U.S.C. 632(a)(2)) is amended to read as follows:

‘(2) SIZE STANDARD CRITERIA-

‘(A) IN GENERAL- In addition to the criteria specified in paragraph (1), the Administrator may specify detailed definitions or standards by which a business concern may be determined to be a small business concern for the purposes of this Act or any other Act.

‘(B) ADDITIONAL CRITERIA- The standards described in paragraph (1) may utilize number of employees, dollar volume of business, net worth, net income, or a combination thereof.

‘(C) REQUIREMENTS- Unless specifically authorized by statute, no Federal department or agency may prescribe a size standard for categorizing a business concern as a small business concern, unless such proposed size standard--

‘(i) is proposed after an opportunity for public notice and comment;

‘(ii) provides for determining--

‘(I) the size of a manufacturing concern as measured by the manufacturing concern’s average employment based upon employment during each of the manufacturing concern’s pay periods for the preceding 12 months;

‘(II) the size of a business concern providing services on the basis of the annual average gross receipts of the business concern over a period of not less than 3 years; and

‘(III) the size of other business concerns on the basis of data over a period of not less than 3 years; and

‘(iii) is approved by the Administrator.’.

SEC. 302. SUNSET ON PREFERRED SURETY BOND GUARANTEE PROGRAM.

Section 207 of the Small Business Administration Reauthorization and Amendment Act of 1988 (15 U.S.C. 694b note) is amended by striking ‘September 30, 1994’ and inserting ‘September 30, 1995’.

(a) IN GENERAL- The Small Business Administration shall promote the award of Federal manufacturing contracts to small business concerns that participate in manufacturing application and education centers by working with the Department of Commerce and other agencies to identify components and subsystems that are both critical and currently foreign-sourced.

(b) QUALIFICATIONS- In order to qualify as a manufacturing application and education center under this section, an entity shall have the capacity to assist small business concerns in a shared-use production environment and to offer the following services:

(1) Technology demonstration.

(2) Technology education.

(3) Technology application support.

(4) Technology advancement support.

(c) INAPPLICABILITY OF CERTAIN REQUIREMENTS- The requirements of section 15(o)(1)(B) of the Small Business Act shall not apply with respect to any manufacturing contract carried out by a small business concern in conjunction with a manufacturing application and education center under this section.

(d) REGULATIONS- Not later than 180 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall promulgate final regulations to carry out this section.

(e) TERMINATION OF AUTHORITY- The authority of the Small Business Administration under this section shall terminate on September 30, 1997.

TITLE IV--BUSINESS DEVELOPMENT ASSISTANCE

Subtitle A--General Provisions

SEC. 401. SUNSET ON COSPONSORED TRAINING.

(a) IN GENERAL-

(1) REPEAL- The amendments made by section 5(a) of Small Business Computer Security and Education Act of 1984 (15 U.S.C. 633 note) are hereby repealed.

(b) CONFORMING AMENDMENT- Section 7(b) of the Small Business Computer Security and Education Act of 1984 (15 U.S.C. 633 note) is amended in the second sentence by striking ‘and the amendments made to section 8(b)(1)(A) of the Small Business Act by section 5(a)(2) of this Act are’ and inserting ‘is’.

SEC. 402. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM LEVEL.

Section 21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) is amended to read as follows:

‘(4) SMALL BUSINESS DEVELOPMENT CENTER PROGRAM LEVEL-

‘(A) IN GENERAL- The Administration shall require as a condition of any grant (or amendment or modification thereof) made to an applicant under this section, that a matching amount (excluding any fees collected from recipients of such assistance) equal to the amount of such grant be provided from sources other than the Federal Government, to be comprised of not less than 50 percent cash and not more than 50 percent of indirect costs and in-kind contributions.

‘(B) RESTRICTION- The matching amount described in subparagraph (A) shall not include any indirect costs or in-kind contributions derived from any Federal program.

‘(C) NATIONAL PROGRAM-

‘(i) IN GENERAL- No recipient of funds under this section shall receive a grant that exceeds--

‘(I) for fiscal year 1995, the greater of--

‘(aa) the sum of such recipient’s pro rata share of a national program based upon the population to be served by the small business development center as compared to the total population in the United States, and $100,000; or

‘(bb) $200,000; and

‘(II) except as provided in clause (ii), in each succeeding fiscal year, the greater of--

‘(aa) the sum of such recipient’s pro rata share of a national program based upon the population to be served by the small business development center as compared to the total population in the United States, and $200,000; or

‘(bb) $300,000.

‘(ii) EXCEPTION- The provisions of clause (i)(I) shall apply in any fiscal year after fiscal year 1995 in which, based on funds appropriated, a small business development center would, under the provisions of clause (i)(II), receive less than the small business development center received in fiscal year 1995.

‘(iii) AMOUNT- The amount of the national program shall be--

‘(I) $70,000,000 through September 30, 1995;

‘(II) $77,500,000 from October 1, 1995 through September 30, 1996; and

‘(III) $85,000,000 beginning October 1, 1996.

The amount for which a small business development center is eligible under this paragraph shall be based upon the amount of the national program in effect as of the date for commencement of performance of the small business development center’s grant.’.

SEC. 403. FEDERAL CONTRACTS WITH SMALL BUSINESS DEVELOPMENT CENTERS.

Section 21(a)(5) of the Small Business Act (15 U.S.C. 648(a)(5)) is amended to read as follows:

‘(5) FEDERAL CONTRACTS WITH SMALL BUSINESS DEVELOPMENT CENTERS-

‘(A) IN GENERAL- A small business development center may enter into a contract with a Federal department or agency to provide specific assistance to small business concerns, if the contract is approved in advance by the Associate Administrator of the small business development center program.

‘(B) APPROVAL CRITERIA- Each approval of a contract under subparagraph (A) shall be based upon a determination that the contract will provide assistance to small business concerns and that performance of the contract will not hinder the small business development center in carrying out the terms of the grant received by the small business development center from the Administration.

‘(C) EXEMPTION FROM MATCHING REQUIREMENT- A contract under this paragraph shall not be subject to the matching funds or eligibility requirements of paragraph (4).

‘(D) ADDITIONAL PROVISION- Notwithstanding any other provision of law, a contract for assistance under this paragraph may not be applied to any Federal department or agency’s small business, woman-owned business, or socially and economically disadvantaged business contracting goal under section 15(g).’.

SEC. 404. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM EXAMINATION AND CERTIFICATION.

Section 21(k) of the Small Business Act (15 U.S.C. 648(k)) is amended to read as follows:

‘(k) PROGRAM EXAMINATION AND CERTIFICATION-

‘(1) EXAMINATION- Not later than 180 days after the date of enactment of this subsection, the Administration shall develop and implement a biannual programmatic and financial examination of each small business development center established pursuant to this section.

‘(2) CERTIFICATION- The Administration may provide financial support, by contract or otherwise, to the association authorized by subsection (a)(3)(A) for the purpose of developing a small business development center certification program.

‘(3) EXTENSION OR RENEWAL OF COOPERATIVE AGREEMENTS- In extending or renewing a cooperative agreement of a small business development center, the Administration shall consider the results of the examination and certification program conducted pursuant to paragraphs (1) and (2).’.

SEC. 405. SERVICE CORPS OF RETIRED EXECUTIVES (SCORE) PROGRAM.

Section 8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(1)) is amended by adding at the end the following new subparagraph:

‘(H) In carrying out subparagraph (B), the Administration shall encourage the Service Corps of Retired Executives (SCORE) established pursuant to such subparagraph, to the maximum extent practicable, to consult and work in conjunction with the Corporation for National and Community Service and the Points of Light Foundation established under the National and Community Service Act of 1990.’.

SEC. 406. INFORMATION CONCERNING FRANCHISING.

Section 8(b)(1)(A) of the Small Business Act (15 U.S.C. 637(b)(1)(A)) is amended by inserting ‘including information on the benefits and risks of franchising,’ after ‘small-business enterprises,’.

Subtitle B--Development of Woman-Owned Businesses

SEC. 411. EXTENSION OF AUTHORITY FOR DEMONSTRATION PROJECTS.

The Small Business Act (15 U.S.C. 631 et seq.) is amended--

(1) by redesignating section 28 (as added by section 2 of the Women’s Business Development Act of 1991) as section 29; and

(2) in section 29(g), as redesignated, by striking ‘1995’ and inserting ‘1997’.

SEC. 412. ESTABLISHMENT OF OFFICE OF WOMEN’S BUSINESS OWNERSHIP.

Section 29 of the Small Business Act (15 U.S.C. 656), as redesignated by section 411, is amended by adding at the end the following new subsection:

‘(h) OFFICE OF WOMEN’S BUSINESS OWNERSHIP- There is hereby established within the Administration an Office of Women’s Business Ownership, which shall be responsible for the administration of the Administration’s programs for the development of women’s business enterprises, as such term is defined in section 408 of the Women’s Business Ownership Act of 1988. The Office of Women’s Business Ownership shall be administered by an Assistant Administrator, who shall be appointed by the Administrator.’.

SEC. 413. NATIONAL COMMISSION ON WOMEN IN BUSINESS.

(a) ESTABLISHMENT- Section 401 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 631 note) is amended to read as follows:

‘SEC. 401. ESTABLISHMENT.

‘There is hereby established a Commission to be known as the ‘National Commission on Women in Business’ (hereafter in this title referred to as the ‘Commission’).’.

(b) DUTIES OF THE COMMISSION- Section 402 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 631 note) is amended to read as follows:

‘SEC. 402. DUTIES OF THE COMMISSION.

‘The Commission shall--

‘(1) review, promote, coordinate, and monitor plans and programs, developed in the public and private sectors, which affect the ability of woman-owned businesses to obtain capital and credit;

‘(2) promote and assist in the development of the Intermediate Census on Women’s Business Ownership and other surveys of woman-owned businesses;

‘(3) provide assistance to and outreach for the involvement of women business owners in White House Conference on Small Business;

‘(4) study and assess--

‘(A) the obstacles faced by women seeking to establish businesses and women seeking senior management positions in large and small businesses and in the professions; and

‘(B) the contributions to the Nation’s economy by businesses owned or managed by women; and

‘(5) design a comprehensive plan for a joint public-private sector effort to facilitate the development and growth of woman-owned businesses.

‘(b) REPORT- Not later than January 31, 1996, the Commission shall submit a report to the President and the Committees on Small Business of the Senate and the House of Representatives describing the plan developed pursuant to subsection (a)(5).’.

(c) MEMBERSHIP- Section 403 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 631 note) is amended to read as follows:

‘SEC. 403. MEMBERSHIP OF THE COMMISSION.

‘(a) IN GENERAL- The Commission shall be composed of 14 members, of whom--

‘(1) 7 members shall be the individuals described in subsection (b); and

‘(2) 7 members shall be appointed in accordance with subsection (c).

‘(b) PUBLIC SECTOR MEMBERS- For purposes of subsection (a)(1), the individuals described in this section are--

‘(1) the Administrator of the Small Business Administration;

‘(2) the Assistant Administrator of the Office of Women’s Business Ownership of the Small Business Administration;

‘(3) the Secretary of the Treasury, or the Secretary’s designee;

‘(4) the Secretary of Labor, or the Secretary’s designee;

‘(5) the Secretary of Commerce, or the Secretary’s designee;

‘(6) the Administrator of the General Services Administration, or the Administrator’s designee; and

‘(7) 1 member of the Board of Governors of the Federal Reserve System, or the designee of a member.

‘(c) PRIVATE SECTOR MEMBERS-

‘(1) CHAIRPERSON- Not later than 45 days after the date of enactment of the Small Business Administration Reauthorization and Amendment Act of 1994, the President shall appoint an individual to serve as the chairperson of the Commission (hereafter in this title referred to as the ‘Chairperson’) who shall be a prominent business-woman who is qualified to head the Commission by virtue of her education, training, and experience.

‘(2) OTHER MEMBERS- Not later than 60 days after the date of enactment of the Small Business Administration Reauthorization and Amendment Act of 1994, the Administrator of the Small Business Administration shall appoint 6 members of the Commission, of whom--

‘(A) 1 shall be an owner of a small business concern, as such term is defined in section 3 of the Small Business Act, who is a member of the same political party as the President;

‘(B) 1 shall be an owner of a small business concern, as such term is defined in section 3 of the Small Business Act, who is not a member of the same political party as the President; and

‘(C) 4 shall be representatives of national women’s business organizations.

‘(d) ADMINISTRATIVE PROVISIONS-

‘(1) RESTRICTION- The members of the Commission appointed pursuant to subsection (c) shall not be officers or employees of the Federal Government.

‘(2) VICE CHAIRPERSON- The member of the Commission appointed pursuant to subsection (b)(2) shall serve as vice chairperson of the Commission.

‘(3) TERMS- The term of service of the members of the Commission appointed pursuant to subsection (c) shall be 1 year. No member of the Commission may serve for more than 2 consecutive terms.

‘(4) DESIGNEES- Each designee appointed pursuant to subsection (b) shall--

‘(A) be a policy-making official whose duties are consistent with the duties of the Commission; and

‘(B) report directly to the head of the agency on the activities of the Commission.

‘(5) COMPENSATION AND TRAVEL EXPENSES-

‘(A) PUBLIC SECTOR MEMBERS- The members of the Commission described in subsection (b) shall serve on the Commission without additional compensation.

‘(B) PRIVATE SECTOR MEMBERS- The members of the Commission appointed pursuant to subsection (c) shall serve without pay for membership, except that such members shall be entitled to reimbursement for domestic travel, subsistence, and other necessary expenses incurred by them in carrying out the functions of the Commission in the same manner as persons serving on advisory boards pursuant to section 8(b) of the Small Business Act.

‘(6) VACANCIES- A vacancy on the Commission shall, not later than 30 days after the date on which the vacancy occurs, be filled in the same manner in which the original appointment was made.

‘(7) MEETINGS- The Commission shall meet at the call of the Chairperson not less than 4 times each year.

‘(8) QUORUMS-

‘(A) RECEIPT OF TESTIMONY- Four members of the Commission shall constitute a quorum for the receipt of testimony and other evidence.

‘(B) APPROVAL OF RECOMMENDATIONS- A majority of the members of the Commission shall constitute a quorum for the approval of recommendations or reports issued pursuant to sections 402 and 406.’.

(d) EXECUTIVE DIRECTOR AND STAFF- Section 404 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 631 note) is amended to read as follows:

‘SEC. 404. EXECUTIVE DIRECTOR AND STAFF.

‘(a) EXECUTIVE DIRECTOR- The Commission shall have an Executive Director who shall be appointed by the Chairperson and the Assistant Administrator of the Small Business Administration Office of Women’s Business Ownership. Upon the recommendation by the Executive Director, the Chairperson may appoint and fix the pay of 4 additional employees at a rate of pay not to exceed the maximum rate of pay payable for a position at GS-15 of the General Schedule.

‘(b) ADMINISTRATIVE PROVISIONS- The Executive Director and staff of the Commission may be appointed without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and except as provided in subsection (a), may be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates, except that the Executive Director so appointed may not receive pay in excess of the annual rate of basic pay payable for a position at ES-1 of the Senior Executive Pay Schedule under section 5832 of title 5, United States Code.

‘(c) DETAIL OF ADDITIONAL PERSONNEL- Upon request to the Chairperson, the head of any Federal department or agency may detail any of the personnel of such agency to the Commission to assist the Commission in carrying out its duties under this title without regard to section 3341 of title 5, United States Code.’.

(e) POWERS OF THE COMMISSION- Section 405 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 631 note) is amended--

(1) by striking ‘Council’ each place it appears and inserting ‘Commission’; and

(2) by adding at the end the following new subsection:

‘(f) COOPERATION WITH PRIVATE ENTITIES-

‘(1) IN GENERAL- Subject to the requirements of paragraph (2), the Commission may carry out its duties under section 402 through cooperation with private nonprofit and for-profit entities.

‘(a) IN GENERAL- There are authorized to be appropriated to carry out this title--

‘(1) $500,000 in fiscal year 1995;

‘(2) $500,000 is fiscal year 1996; and

‘(3) $100,000 in fiscal year 1997.’; and

(2) by striking subsection (c).

(h) TRANSITION REIMBURSEMENT- In order to facilitate the transition from the National Women’s Business Council, established by title IV of the Women’s Business Ownership Act of 1988, to the National Commission on Women in Business established by this section, the National Commission on Women in Business may, during the 30-day period beginning on the date on which the Chairperson of the National Commission on Women in Business is appointed pursuant to section 413 of this Act, reimburse the costs and salaries, where appropriate, of the Chairperson, Executive Director, and staff of the National Women’s Business Council for transition activities .

(i) SUNSET- The authority of the National Commission on Women in Business established under title IV of the Women’s Business Ownership Act of 1988, as amended by this section, shall terminate on November 30, 1996.

TITLE V--RELIEF FROM DEBENTURE PREPAYMENT PENALTIES

SEC. 501. SHORT TITLE.

This title may be cited as the ‘Small Business Prepayment Penalty Relief Act of 1994’.

SEC. 502. PREPAYMENT OF DEVELOPMENT COMPANY DEBENTURES.

(a) IN GENERAL- Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended by adding at the end the following new section:

‘SEC. 508. PREPAYMENT OF DEVELOPMENT COMPANY DEBENTURES.

‘(a) IN GENERAL-

‘(1) PREPAYMENT AUTHORIZED- Subject to the requirements set forth in subsection (b), an issuer of a debenture purchased by the Federal Financing Bank and guaranteed by the Administration under section 503 may, at the election of the borrower whose loan secures such debenture and with the approval of the Administration, prepay such debenture in accordance with the provisions of this section.

‘(2) PROCEDURE-

‘(A) IN GENERAL- In making a prepayment under paragraph (1)--

‘(i) the borrower shall pay to the Federal Financing Bank an amount that is equal to the sum of the unpaid principal balance due on the debenture as of the date of the prepayment (plus accrued interest at the coupon rate on the debenture) and the amount of the repurchase premium described in subparagraph (B); and

‘(ii) the Administration shall pay to the Federal Financing Bank the difference between the repurchase premium paid by the borrower under this subsection and the repurchase premium that the Federal Financing Bank would otherwise have received.

‘(B) REPURCHASE PREMIUM-

‘(i) IN GENERAL- For purposes of subparagraph (A)(i), the repurchase premium is the amount equal to the product of--

‘(I) the unpaid principal balance due on the debenture on the date of prepayment; and

‘(b) REQUIREMENTS- For purposes of subsection (a), the requirements of this subsection are that--

‘(1) the debenture is outstanding and neither the loan that secures the debenture nor the debenture is in default on the date on which the prepayment is made;

‘(2) State, local, or personal funds, or the proceeds of a refinancing in accordance with subsection (d) of this section under the programs authorized by sections 504 and 505, are used to prepay the debenture; and

‘(3) the issuer certifies that the benefits, net of fees and expenses authorized herein, associated with prepayment of the debenture are entirely passed through to the borrower.

‘(c) NO PREPAYMENT FEES OR PENALTIES- No fees or penalties other than those specified in this section may be imposed on the issuer, the borrower, the Administration, or any fund or account administered by the Administration as the result of a prepayment under this section.

‘(d) REFINANCING LIMITATIONS-

‘(1) IN GENERAL- The refinancing of a debenture under sections 504 and 505, in accordance with subsection (b)(2) of this section--

‘(A) shall not exceed the amount necessary to prepay existing debentures, including all costs associated with the refinancing and any applicable prepayment penalty or repurchase premium; and

‘(B) shall be subject to the provisions of sections 504 and 505 and the rules and regulations promulgated thereunder, including rules and regulations governing payment of authorized expenses, commissions, fees, and discounts to brokers and dealers in trust certificates issued pursuant to section 505.

‘(2) JOB CREATION- An applicant for refinancing under section 504 of a loan made pursuant to section 503 shall not be required to demonstrate that a requisite number of jobs will be created with the proceeds of a refinancing.

‘(3) LOAN PROCESSING FEE- To cover the cost of loan packaging, processing, and other administrative functions, a development company that provides refinancing under subsection (b)(2) may impose a loan processing fee, not to exceed 0.5 percent of the principal amount of the loan.

‘(e) DEFINITIONS- For purposes of this section--

‘(1) the term ‘issuer’ means the qualified State or local development company that issued a debenture pursuant to section 503, which has been purchased by the Federal Financing Bank; and

‘(2) the term ‘borrower’ means a small business concern whose loan secures a debenture issued pursuant to section 503.’.

(b) REGULATIONS- Not later than 30 days after the date of enactment of this Act, the Administration shall promulgate such regulations as may be necessary to carry out this section, including regulations establishing a deadline for receipt of applications for prepayment and refinancing under title V of the Small Business Investment Act of 1958.

(c) AUTHORIZATION- There are authorized to be appropriated such sums as may be necessary to carry out this section.

TITLE VI--MISCELLANEOUS AMENDMENTS

SEC. 601. CONSOLIDATION OF FUNDING ACCOUNTS.

(a) IN GENERAL- Section 4(c) of the Small Business Act (15 U.S.C. 633(c)) is amended by striking ‘(c)(1) There’ and all that follows through paragraph (4) and inserting the following:

‘(c) LOAN LIQUIDATION FUND-

‘(1) IN GENERAL-

‘(A) ESTABLISHMENT- There is hereby established in the United States Treasury a fund to be known as the Loan Liquidation Fund (hereafter in this subsection referred to as the ‘Fund’).

‘(B) AMOUNTS CONTAINED IN FUND- All amounts received by the Administration prior to October 1, 1991, from the repayment of loans and debentures, payments of interest, and other receipts arising out of transactions entered into by the Administration pursuant to section 5(e), 5(g), 7(a), 7(b), 7(c)(2), 7(e), 7(h), 7(l), 7(m), or 8(a) of this Act, or title III, IV, or V of the Small Business Investment Act of 1958, shall be paid into the Fund. Balances existing in the revolving funds on or after the effective date of this paragraph shall be transferred to the Fund on such date.

‘(C) OPERATING EXPENSES- The Fund shall have available, without fiscal year limitation, such funds as may be necessary to finance the operational needs of the Fund.

‘(2) ANNUAL STATUS REPORT- As soon as practicable after the end of each fiscal year, the Administration shall submit to the Committees on Small Business and Appropriations of the Senate and the House of Representatives a complete report on the status of the Fund.’.

(b) INTEREST PAYMENTS TO TREASURY- Section 4(c) of the Small Business Act (15 U.S.C. 633(c)) is amended--

(1) by redesignating paragraph (5) as paragraph (3); and

(2) in paragraph (3)(B), as redesignated, by striking clause (ii) and inserting the following:

‘(ii) Upon the expiration of each fiscal year, the Administration shall pay into the miscellaneous receipts of the United States Treasury the actual interest the Administration has collected during the preceding fiscal year on all financings made under the authority of this Act.’.

SEC. 602. IMPOSITION OF FEES.

Section 5(b) of the Small Business Act (15 U.S.C. 634(b)) is amended--

(1) in paragraph (10), by striking ‘and’ at the end;

(2) in paragraph (11), by striking the period at the end and inserting a semicolon; and

(3) by adding at the end the following new paragraphs:

‘(12) impose, retain, and use only those fees which are specifically authorized by law or which are in effect on September 30, 1994, and in the amounts and at the rates in effect on such date, except that the Administrator may, subject to approval in appropriations Acts, impose, retain, and utilize, additional fees--

‘(A) not to exceed $300 for each loan servicing action requested after disbursement of the loan, including any substitution of collateral, loan assumption, release or substitution of a guarantor, reamortization, or similar action; and

‘(B) to recover the direct, incremental cost involved in the production and dissemination of compilations of information produced by the Administration under the authority of the Small Business Act and the Small Business Investment Act of 1958; and

‘(13) collect, retain and utilize, subject to approval in appropriations Acts, any amounts collected by fiscal transfer agents and not used by such agent as payment of the cost of loan pooling or debenture servicing operations, except that amounts collected under this paragraph shall be utilized solely to facilitate the administration of the program that generated the excess amounts.’.

SEC. 603. JOB CREATION AND COMMUNITY BENEFIT.

Section 7(a)(21) of the Small Business Act (15 U.S.C. 636(a)(21)) is amended by adding at the end the following new subparagraph:

‘(E) JOB CREATION AND COMMUNITY BENEFIT- In providing assistance under this paragraph, the Administration shall develop procedures to ensure, to the maximum extent practicable, that such assistance is used for projects that--

‘(i) have the greatest potential for--

‘(I) creating new jobs for individuals whose employment is involuntarily terminated due to reductions in Federal defense expenditures; or

‘(II) preventing the loss of jobs by employees of small business concerns described in subparagraph (A)(i); and

‘(ii) have substantial potential for stimulating new economic activity in communities most affected by reductions in Federal defense expenditures.’.

SEC. 604. MICROLOAN PROGRAM AMENDMENTS.

Section 7(m)(9)(B) of the Small Business Act (15 U.S.C. 636(m)(9)(B)) is amended--

(1) by inserting ‘and loan guarantees’ after ‘for loans’; and

(2) by inserting after ‘experienced microlending organizations’ the following: ‘and national and regional nonprofit organizations that have demonstrated experience in providing training support for microenterprise development and financing.’.

SEC. 605. TECHNICAL CLARIFICATION.

(a) DEFENSE CONVERSION- Section 7(a)(21)(A) of the Small Business Act (15 U.S.C. 636(a)(21)(A)) is amended by striking ‘under the’ and inserting ‘on a guaranteed basis under the’.

SEC. 606. SECONDARY MARKET STUDY DUE DATE.

Section 6 of the Small Business Credit Enhancement Act of 1993 (15 U.S.C. 634 note) is amended by striking ‘16 months after the date of enactment’ and inserting ‘November 1, 1994’.

SEC. 607. STUDY AND DATA BASE: GUARANTEED BUSINESS LOAN PROGRAM AND DEVELOPMENT COMPANY PROGRAM.

(a) STUDY AUTHORIZED- The Administration shall conduct a study of--

(1) the Guaranteed Business Loan program under section 7(a) of the Small Business Act; and

(2) the Development Company program under sections 502, 503, and 504 of the Small Business Investment Act of 1958.

(b) EVALUATION- After conducting the study under subsection (a), the Administration shall evaluate the performance of the programs described in paragraphs (1) and (2) of subsection (a) on an annual and aggregated basis during the most recent 4-year period for which data are available. Such evaluation shall focus on the following factors:

(1) The number, dollar amount, and average size of the loans or financings under each program.

(2) The number, dollar amount, and average size of the loans or financings made to woman-owned and minority-owned businesses under each program.

(3) The geographic distribution of the loans or financings under each program.

(4) The jobs created or maintained attributable to the loans or financings under each program.

(5) The number, dollar amount, and average size of the loans or financings on which borrowers defaulted under each program.

(6) The amounts recovered by the Administration after default, foreclosure, or otherwise under each program.

(7) The number of companies which are no longer in business despite receiving the loans or financings under each program.

(8) The taxes paid by businesses which received the loans or financings under each program.

(9) Such other information as the Administration determines to be appropriate for a complete evaluation of each program.

(c) CONTRACTING WITH INDEPENDENT ENTITIES- In carrying out subsections (a) and (b), the Administration may contract with an independent entity or entities--

(1) to conduct the study pursuant to subsection (a); and

(2) to develop a database of information to enable the Administration to maintain and access, on an ongoing basis, current information relating to the factors set forth in subsection (b).

(d) DATE- The study authorized by subsection (a) shall be completed not later than September 30, 1995.

SEC. 608. SBIR VENDORS.

Section 9(q)(2) of the Small Business Act (15 U.S.C. 638(q)(2)) is amended to read as follows:

‘(2) VENDOR SELECTION- Each agency may select a vendor to assist small business concerns to meet the goals listed in paragraph (1) for a term not to exceed 3 years. Such selection shall be competitive and shall utilize merit-based criteria.’.

SEC. 609. PROGRAM EXTENSION.

SEC. 610. PROHIBITION ON THE USE OF FUNDS FOR INDIVIDUALS NOT LAWFULLY WITHIN THE UNITED STATES.

Section 2 of the Small Business Act (15 U.S.C. 631) is amended by adding at the end the following new subsection:

‘(i) PROHIBITION ON THE USE OF FUNDS FOR INDIVIDUALS NOT LAWFULLY WITHIN THE UNITED STATES- None of the funds made available pursuant to this Act may be used to provide any direct benefit or assistance to any individual in the United States if the Administrator or the official to which the funds are made available receives notification that the individual is not lawfully within the United States.’.

SEC. 611. OFFICE OF ADVOCACY EMPLOYEES.

Section 204 of Public Law 94-305 (15 U.S.C. 634d) is amended--

(1) in the matter preceding paragraph (1) by striking ‘after consultation with and subject to the approval of the Administrator,’; and

(2) in paragraph (1), by striking ‘ten’ and inserting ‘14’.

SEC. 612. PROHIBITION ON THE PROVISION OF ASSISTANCE.

Section 4 of the Small Business Act (15 U.S.C. 633) is amended by adding at the end the following new subsection:

‘(e) PROHIBITION ON THE PROVISION OF ASSISTANCE- Notwithstanding any other provision of law, the Administration is prohibited from providing any financial or other assistance to any business concern or other person engaged in the production or distribution of any product or service that is determined to be obscene.’.

SEC. 613. CERTIFICATION OF COMPLIANCE WITH CHILD SUPPORT OBLIGATIONS.

Section 4 of the Small Business Act (15 U.S.C. 633), as amended by section 612, is amended by adding at the end the following new subsection:

‘(f) CERTIFICATION OF COMPLIANCE WITH CHILD SUPPORT OBLIGATIONS-

‘(1) IN GENERAL- Each applicant for financial assistance under this Act, including an applicant for a direct loan or a loan guarantee, shall certify that the applicant is not in violation of the terms of any--

‘(A) administrative order;

‘(B) court order; or

‘(C) repayment agreement entered into between the applicant and the custodial parent or State agency providing child support enforcement services,

that requires the applicant to pay child support, as such term is defined in section 462(b) of the Social Security Act.

‘(2) ENFORCEMENT- Not later than 6 months after the date of enactment of this subsection, the Administration shall issue such regulations as may be necessary to enforce compliance the requirements of this subsection.’.